OCC Trading, page-810

I think I finally worked out why OCC can never get any lasting traction, and why especially the share price was a flop after the positive rotator cuff results.

it is because of because of the huge number of unlisted options awarded.

The annual report said that around 6 million options were due to expire 31dec 2021. Their exercise price is 25c. so far I think about one million of those options have been exercised, leaving 5 million still to go.

I am guessing the lucky beneficiaries of these options sell OCC shares on market to pay for the 25c exercise price.

6 million options with exercise price of 25c means $1.5 m worth of shares of fully paid may get sold to fund the exercise price.

OCC is a thinly traded stock, so $1.5m worth of shares coming onto the market over a couple of weeks is a strain on the share price.

so, of course, it makes sense for these option holders to dump hard into any good news and the days after….like right now.

…

this option nightmare isn’t going away either…all up, there are 33 million unlisted options on the books.

I do not think OCC is a stock friendly to retail investors.